What recession? Harvey Nichols department store in Knightsbridge says it has just sold a £15,000 hand-made leather handbag, by US designer Lana Marks. The sale of the multi-coloured alligator leather Positano bag shows that high-end shoppers are still prepared to pay huge sums for a handbag.

But the slump has prompted a shift to less obvious brands, as luxury lovers seek quality that won't be outdated after one season, retailers say.

Hillary Vallieres, a spokeswoman at Harvey Nichols, said the Lana Marks label is "in the category of discreet luxury – it doesn't have a screaming label as other big brands do. A lot of customers are considering having less ostentatious labels, especially given the current recession."

Customers tend to be wealthy globetrotters, said Rebecca Saville, personal shopping manager at Harvey Nichols. Big ticket bags have been made more affordable by the weaker pound, especially for shoppers from Asia and the euro-zone.

Classic French couture brands such as Lanvin are also enjoying the flight to quality, she said, while classic leather jackets and £1,000-a-pair distressed jeans from Balmain are flying off the shelves.

The handbag market exceeded £500m in the UK for the first time last year but market researcher Mintel predicted that it would be a casualty of the recession.